So I am frequently asked to show the short sale steals and deals including REO’s and
great Miami Beach condo deals alike. Here are new luxury condos meeting those requests. An ocean view from a condo is manageable in the price range of 500 to 750k. I do believe that prices could go down in the next 6 to12 months. It may be nominal as far as continued depreciation along the ocean. I believe a cash buyer can find the very best value in the following 18 months. Buyer’s needing financing better jump on the bandwagon as interest rates rise. I am working with MANY cash buyers who are purchasing (typically Bank Owned REO’s & short sales) in today’s waterfront market. My statistics differ from media reports based on an analysis on a “micro location” of only Miami Beach oceanfront. Since JAN08 inventory is shrinking. Since MAY08 pending sales have and are doubled over 1st quarter in Sunny Isles real estate, South Beach and Miami Beach. While inventory has decreased in Bal Harbour, pending sales are staying consistent.
Sunny Isles Oceanfront Views
I am bullish on our oceanfront market and think cash buyer’s I’m representing are purchasing ahead (10 to 20% off list price) of any potential continued depreciating curve… although NO one knows what may occur in the coming months. The buyer’s I work with today are also buying with at least a 3 year outlook looking at local area expert statistics like you’ll find here. If you enjoy media reports keep in mind they report on Miami as a whole. For a long term hold you should do quite well. Factoring in all costs associated, I think today’s price per square foot on closed sales are below reproduction costs (new Sunny Isles oceanfront condos closing at $450-515 psf).
I’m interested in waterfront REO’s can you offer any guidance on buying such a property?
Hi Andrew,
I would suggest getting financing in order and have a loan commitment to accompany the offer when financing is needed. The majority of clients pay cash for the few great REO’s that are currently out along Miami ‘Beach’. Many banks will take a lower cash offer with lending being so tight. Cash buyers are also abundant so you may be competing against 2 to 3 offers. REO’s generally make it tough for anyone else to sell as the prices are typically 20% less than the competition. You will sometimes find interiors ripped out by the previous owner and needing new kitchen appliances & lighting. There are a handful of excellent new REO’s in North Bay Village and a few along the beaches depending on the price point of comfort. Contact me direct for real estate conversation at 305-978-7704 and warm regards.
I don’t live in Miami and have never been there, and that does sound a bit spendy. Then again, it’s such a beautiful view and I’m sure I would never get sick of it :p How relaxing! I can’t complain!